Revenue cycle management company Ensemble Health Partners landed a new investor.
Thoreau, a healthcare investment platform founded by private equity executive Matt Holt, has agreed to make a strategic growth investment in the company. Berkshire Partners, Warburg Pincus and Bon Secours Mercy Health will continue as investors in Ensemble alongside Thoreau, the companies announced.
Terms of the deal were not disclosed.
Ensemble, a 12-year-old company, manages end-to-end revenue cycle operations for health systems, including more than 200 hospitals, and more than $55 billion in net patient revenue. The company's platform spans RCM operations including patient access, coding, claims management, denial prevention, accounts receivable follow-up and the patient financial experience. Ensemble's platform combines certified revenue cycle operators, data-rich intelligence and advanced artificial intelligence, according to the company.
The investment will support Ensemble’s continued growth and accelerate investment in technology and people, the company said in a press release.
“There is tremendous opportunity to reduce the friction in healthcare for providers, patients, and everyone involved, and we want to remain at the forefront of the innovation that makes that possible,” said Judson Ivy, founder and CEO of Ensemble, in a statement. “The addition of a strategic partner with this depth of experience in healthcare administration, technology, and services gives us additional capital and expertise to expand what we deliver for our clients and the communities they serve.”
Bloomberg reported earlier this month that Thoreau Group was in talks to acquire Ensemble Health Partners in a deal valued at about $12 billion. Holt left PE firm New Mountain Capital late last year to set up the Thoreau Group venture.
The transaction is subject to customary closing conditions and approvals.
As RCM companies ramp up AI solutions, Ensemble is teaming up with enterprise AI company Cohere to build an RCM-native large language model designed specifically for healthcare financial workflows. The RCM-native LLM model is shaped by Ensemble’s operational expertise and fine-tuned on real RCM tasks to power AI agents that support workflows from patient intake through account resolution, company executives said last month.